Grade A AI-Researched

Papua New Guinea -- Securities Classification Regulatory Overview

Published: 2026-04-22 Updated: 2026-08-26 Researched: 2026-08-26 Author: deepseek/deepseek-chat Version 2 Sources cited in: English (12)

Methodology

AI-generated synthesis from web search results.

Limitations

  • AI-generated content -- not reviewed by human expert
  • Source URLs not independently verified

RESEARCH: Papua New Guinea Cryptocurrency and Digital Asset Securities Regulatory Requirements

Executive Summary

  • Papua New Guinea does not have a specific legal framework for cryptocurrency or digital assets; the Securities Commission of Papua New Guinea (SCPNG) regulates capital markets under the Securities Act 1997, which does not expressly address digital assets. Securities Commission of Papua New Guinea
  • The SCPNG only licenses the Port Moresby Stock Exchange and Trustee Companies involved in the Unit Trust Industry; it does not have powers under the current law to issue licenses to other market intermediaries such as Fund Managers, Stock Brokers/Dealers, Investment Advisors, or Underwriters. Papua New Guinea Registry Services
  • No entity has been licensed to operate a cryptocurrency exchange or digital asset platform in Papua New Guinea, and no specific license type exists for such activities. Securities Commission of Papua New Guinea
  • The practical reality is that digital asset businesses cannot obtain a securities license under current law, and the SCPNG has limited capacity to regulate or license digital asset activities. Securities Commission of Papua New Guinea
  • Legal reforms are underway to expand the SCPNG's licensing powers, but as of 2025–2026, no comprehensive digital asset regulatory framework exists. Papua New Guinea Registry Services

Regulatory Framework

Regulatory Bodies

  • The Securities Commission of Papua New Guinea (SCPNG) is the primary regulator for capital markets in Papua New Guinea; it operates as a Division within the Investment Promotion Authority (IPA). Papua New Guinea Registry Services
  • The SCPNG's office is located at MRDC HAUS Lvl 2, Champion Parade, Down Town Port Moresby, with general enquiries directed to [email protected] and landline +675 3212224. Home - Securities Commission of Papua New Guinea
  • The Bank of Papua New Guinea (BPNG) regulates banking, Savings & Loan Societies, Superannuation Funds, Life Insurance, money markets, and government-issued securities such as Treasury Bills and government bonds. Papua New Guinea Registry Services
  • The Investment Promotion Authority (IPA) hosts the SCPNG as a Division and provides registry and administrative support for capital market regulation. Papua New Guinea Registry Services

Primary Laws

  • The Securities Act 1997 is the primary legislation governing capital markets in Papua New Guinea and vests the SCPNG with regulatory and enforcement powers and functions. Papua New Guinea Registry Services
  • The Securities Regulations (1998) supplement the Securities Act 1997 and provide additional regulatory detail for capital market activities. Papua New Guinea Registry Services
  • The Takeovers Code 1998 was repealed, as noted on the SCPNG's Laws page under "Takeovers Code – Repealed." Acts - Securities Commission of Papua New Guinea
  • The SCPNG publishes Practice Notes and Guidelines under its Laws section, which provide interpretive and operational guidance for market participants. Laws - Securities Commission of Papua New Guinea
  • Gazettal Notices are published by the SCPNG to formally announce regulatory changes and official decisions. Laws - Securities Commission of Papua New Guinea
  • The SCPNG regulates primary markets through the issue of shares (both equity and debt) via Initial Public Offerings (IPOs) and monitors secondary markets including compliance listings of companies from foreign stock exchanges. Papua New Guinea Registry Services
  • The SCPNG regulates the capital markets including both equity and debt securities, private bonds, swaps, subordinate notes, the Unit Trusts industry, and the Fund Management Industry (Non-Superannuation). Papua New Guinea Registry Services

International Standing

  • The SCPNG was admitted as a member of the International Organisation of Securities Commissions (IOSCO) in 1997, which is the global standard setter for securities regulations based in Madrid, Spain. Papua New Guinea Registry Services
  • The SCPNG had not yet become a full signatory member of the IOSCO MMoU (Multilateral Memorandum of Understanding) as of the information available; expectations were set for full membership by the first quarter of 2013, but current status is not confirmed in available sources. Papua New Guinea Registry Services
  • No FATF or Moneyval status information is available in the source materials. Home - Securities Commission of Papua New Guinea

Legal Scope

  • The Securities Act 1997 empowers the SCPNG to investigate persons and organisations which breach the provisions of the Securities Act 1997, the Securities Regulation 1998, and the Takeovers Code 1998. Papua New Guinea Registry Services
  • The SCPNG monitors all trades on the Port Moresby Stock Exchange every day to ensure the market functions well and approves listing and business rules of POMSoX, including any new amendments. Papua New Guinea Registry Services
  • The SCPNG approved POMSoX as a Self Regulatory Organisation, allowing it to set rules and standards for its members and discipline members who breach such rules and standards. Papua New Guinea Registry Services
  • The SCPNG is currently undergoing reforms aimed at building institutional capacity, enhancing and improving regulatory capacity, and improving and opening up the PNG Capital Market for more players, improved service, and better competition. Papua New Guinea Registry Services

Licensing Requirements

Who Needs a License

  • Under the Securities Act 1997, the SCPNG only licenses the Port Moresby Stock Exchange and Trustee Companies involved in the Unit Trust Industry. Papua New Guinea Registry Services
  • The SCPNG does not have the powers under the current law to issue licenses to other market intermediaries such as Fund Managers, Stock Brokers/Dealers, Investment Advisors, Underwriters, or similar entities. Papua New Guinea Registry Services
  • Any entity seeking to operate a digital asset exchange, provide crypto custody, or offer digital asset investment services cannot obtain a license from the SCPNG under the current legal framework. Papua New Guinea Registry Services

Licensed Entities

  • As of the latest available information, only two stock brokers operate in Papua New Guinea: Kina Securities and BSP Capital Limited, which are the only members of the Port Moresby Stock Exchange and wholly own the Exchange. Papua New Guinea Registry Services
  • The SCPNG has granted capital market licenses to several entities, including JMP Securities Limited (renewal granted August 2026), Bilum Heritage Capital Limited (new licenses granted June 2026), Mash Advisory Limited (new license granted May 2026), and Weathermen Capital Advisors Limited (renewal granted April 2026). Home - Securities Commission of Papua New Guinea
  • Zero cryptocurrency exchanges or digital asset platforms have been licensed by the SCPNG, and none are listed among the SCPNG's Licensed & Approved Entities. Securities Commission of Papua New Guinea

Application Process and Structural Requirements

  • The SCPNG maintains a dedicated Licensing section on its website, including a page for Licensed & Approved Entities and processes for capital market participant licensing. Home - Securities Commission of Papua New Guinea
  • No specific application process, timeline, capital requirements, or structural requirements for digital asset or cryptocurrency licensing are available because no such license exists under current law. Papua New Guinea Registry Services

Capital Requirements

  • No minimum capital or monetary thresholds for digital asset licensing are specified in available sources because no digital asset license category exists under the Securities Act 1997. Papua New Guinea Registry Services

AML/KYC Requirements

AML/CTF Compliance

  • The SCPNG maintains a dedicated Anti-Money Laundering & Counter Terrorist Financing (AML/CTF) page under its Licensing section, indicating that AML/CTF compliance is an integral part of market participant obligations. Home - Securities Commission of Papua New Guinea
  • The SCPNG operates a Secure Reporting Portal, which suggests that reporting obligations are enforced for regulated entities. Home - Securities Commission of Papua New Guinea
  • The Investment Promotion Authority has a dedicated AML and CFT Compliance section, indicating that AML/CFT obligations extend to entities registered with the IPA. Papua New Guinea Registry Services
  • The specific requirements for Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), Suspicious Transaction Reporting (STR), record retention, beneficial ownership identification, and Politically Exposed Persons (PEP) screening are not detailed in the available sources. Home - Securities Commission of Papua New Guinea

Enforcement of AML Requirements

  • The SCPNG has conducted several investigations into breaches of the Securities Act 1997, Securities Regulation 1998, and the Takeovers Code 1998, with recommendations made to relevant agencies to file proceedings against people implicated in breaches of the law. Papua New Guinea Registry Services
  • Some investigations are currently underway, though the specific nature of these investigations is not disclosed in the available sources. Papua New Guinea Registry Services

Enforcement Actions

Tax Treatment

Key Gaps & Risks

Legislative Gaps

  • The Securities Act 1997 predates the existence of cryptocurrency and digital assets, meaning the law does not expressly contemplate or address digital asset securities, exchanges, or custodians. Papua New Guinea Registry Services
  • The SCPNG lacks the legal authority to license market intermediaries beyond the Port Moresby Stock Exchange and Trustee Companies in the Unit Trust Industry, which is a significant gap for digital asset businesses. Papua New Guinea Registry Services
  • There is no definition of "digital asset," "cryptocurrency," "virtual asset," or similar terminology in the current securities legislation. Papua New Guinea Registry Services
  • The Takeovers Code 1998 was repealed, but no replacement framework has been implemented to address modern market structures including digital assets. Acts - Securities Commission of Papua New Guinea

Regulatory Capacity Gaps

  • The SCPNG is currently undergoing reforms aimed at building institutional capacity, indicating that the current regulatory capacity is insufficient for comprehensive market oversight. Papua New Guinea Registry Services
  • The SCPNG's structure as a Division within the Investment Promotion Authority may limit its operational independence and ability to rapidly respond to novel market developments such as digital assets. Papua New Guinea Registry Services
  • The SCPNG relies on a small number of licensed market participants (only two stock brokers exist), indicating a limited market ecosystem with minimal regulatory supervision capacity. Papua New Guinea Registry Services

Market Risks

  • Digital asset businesses operating in Papua New Guinea face legal uncertainty because no license category exists for their activities. Papua New Guinea Registry Services
  • Businesses could be exposed to regulatory action if they engage in activities that fall within the scope of the Securities Act 1997 without appropriate authorization, though the SCPNG's enforcement powers are limited. Papua New Guinea Registry Services
  • The SCPNG has demonstrated enforcement against unlicensed entities (e.g., FAITH-G Credit Finance and Investing Limited) and warned against fraudulent social media accounts, indicating active monitoring of market participants. Home - Securities Commission of Papua New Guinea
  • Investors in digital assets face significant risks due to the absence of regulatory protections, and the SCPNG's investor protection mandate is limited to traditional capital market products. Home - Securities Commission of Papua New Guinea

Implementation Gaps

  • The SCPNG's announcement of an "Enterprise System Initiative" in November 2023 to improve operational efficiency suggests that the current technological infrastructure is outdated and may not support digital asset oversight. Home - Securities Commission of Papua New Guinea
  • The SCPNG maintains a Market Monitoring Dashboard for traditional securities but no equivalent capability for digital asset markets. Home - Securities Commission of Papua New Guinea
  • Formal bilateral agreements with international regulators exist (including a bilateral MOU with the New Zealand Financial Markets Authority signed in 1998), but these are unlikely to cover digital asset regulatory cooperation given their age. Securities Commission of Papua New Guinea
  • The regulatory response to digital assets in Papua New Guinea is essentially nonexistent, creating a legal vacuum that exposes businesses and investors to significant risk. Home - Securities Commission of Papua New Guinea

Sources

Source Data

80%

Papua New Guinea does not have a specific legal framework for cryptocurrency or digital assets; the Securities Commission of Papua New Guinea (SCPNG) regulates capital markets under the Securities Act 1997, which does not expressly address digital assets. Securities Commission of Papua New Guinea

80%

The SCPNG only licenses the Port Moresby Stock Exchange and Trustee Companies involved in the Unit Trust Industry; it does not have powers under the current law to issue licenses to other market intermediaries such as Fund Managers, Stock Brokers/Dealers, Investment Advisors, or Underwriters. Papua New Guinea Registry Services

80%

No entity has been licensed to operate a cryptocurrency exchange or digital asset platform in Papua New Guinea, and no specific license type exists for such activities. Securities Commission of Papua New Guinea

80%

The practical reality is that digital asset businesses cannot obtain a securities license under current law, and the SCPNG has limited capacity to regulate or license digital asset activities. Securities Commission of Papua New Guinea

80%

Legal reforms are underway to expand the SCPNG's licensing powers, but as of 2025–2026, no comprehensive digital asset regulatory framework exists. Papua New Guinea Registry Services

80%

The SCPNG has granted capital market licenses to several entities, including JMP Securities Limited (renewal granted August 2026), Bilum Heritage Capital Limited (new licenses granted June 2026), Mash Advisory Limited (new license granted May 2026), and Weathermen Capital Advisors Limited (renewal granted April 2026). Home - Securities Commission of Papua New Guinea

80%

The SCPNG maintains a dedicated Anti-Money Laundering & Counter Terrorist Financing (AML/CTF) page under its Licensing section, indicating that AML/CTF compliance is an integral part of market participant obligations. Home - Securities Commission of Papua New Guinea

80%

The SCPNG has conducted several investigations into breaches of the Securities Act 1997, Securities Regulation 1998, and the Takeovers Code 1998, with recommendations made to relevant agencies to file proceedings against people implicated in breaches of the law. Papua New Guinea Registry Services

80%

FAITH-G Credit Finance and Investing Limited is NOT licensed by the Securities Commission of Papua New Guinea; the SCPNG issued a public notice warning about this entity on May 29, 2026. Home - Securities Commission of Papua New Guinea

80%

The SCPNG warned against fraudulent social media accounts for licensed entities in a public notice issued April 28, 2026, indicating ongoing issues with impersonation of regulated firms. Home - Securities Commission of Papua New Guinea

80%

The SCPNG has conducted several investigations and recommendations have been made to relevant agencies to file proceedings against people implicated in breaches of the law; some investigations are currently underway. Papua New Guinea Registry Services

80%

No enforcement actions specific to cryptocurrency or digital asset businesses have been reported, likely because no digital asset businesses are licensed or recognized in Papua New Guinea. Home - Securities Commission of Papua New Guinea

80%
80%

No information is available in the source materials regarding how cryptocurrency gains would be taxed—whether as income tax, capital gains tax, or VAT. Home - Securities Commission of Papua New Guinea

80%

No specific tax treatment for digital assets, cryptocurrency, or related transactions is referenced in the securities regulatory materials provided. Papua New Guinea Registry Services

80%

The sources do not reference the Internal Revenue Commission of Papua New Guinea or any tax authority guidance relevant to digital assets. Home - Securities Commission of Papua New Guinea

References

This article was generated by deepseek/deepseek-chat .

Primary Sources

paclii.org. (n.d.). paclii.org. Retrieved April 22, 2026, from https://www.paclii.org/pg/legis/

scpng.gov.pg. (n.d.). scpng.gov.pg. Retrieved April 22, 2026, from http://www.scpng.gov.pg/

bankpng.gov.pg. (n.d.). bankpng.gov.pg. Retrieved April 22, 2026, from https://www.bankpng.gov.pg/

fasu.gov.pg. (n.d.). fasu.gov.pg. Retrieved April 22, 2026, from https://www.fasu.gov.pg/

scpng.gov.pg. (n.d.). Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/

ipa.gov.pg. (n.d.). Papua New Guinea Registry Services. Retrieved September 6, 2026, from https://www.ipa.gov.pg/public/help.aspx?cn=RegulatingCapitalMarkets

scpng.gov.pg. (n.d.). Acts - Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/acts/

scpng.gov.pg. (n.d.). Laws - Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/laws/

fma.govt.nz. (n.d.). Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.fma.govt.nz/assets/MOU/981222-bilateral-mou-papua-new-guinea-securities-commission-signed-22-jul-98-docs-99438-.pdf

scpng.gov.pg. (n.d.). About Us - Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/about/

scpng.gov.pg. (n.d.). Overview - Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/overview/

scpng.gov.pg. (n.d.). Publications - Securities Commission of Papua New Guinea. Retrieved September 6, 2026, from https://www.scpng.gov.pg/category/publications/

Edit History

2026-04-22 — auto-publish-pipeline: published — Auto-published: grade A
2026-09-06 — refresh-from-research: refreshed — Refreshed from _processed/pg-securities.md (researched 2026-08-26); grade A → A

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